Thursday, April 4, 2013

Traversing Nicaragua: from the Gold Rush to the Nicaragua Canal, from Californios to the Chinese

Among the first North Americans to set foot on Nicaraguan soil were those restless young souls hoping to strike gold out west. The California Gold Rush of 1848-49 created a need for East-West routes, at a time when the continental U.S. was wilderness—largely unknown territory without sound infrastructureand prior to the completion of the transcontinental railroad in 1869; U.S. entrepreneurs thus turned to Central America. Nicaragua and Panama became the fastest and most secure routes between the Eastern and Western U.S. coasts. As the gold rush—both the transit it provoked and the wealth it created—became an important facet of the U.S. economy and motivation for territorial expansion, these transit routes became essential to the U.S.; it is estimated that they secured the largest U.S. foreign investments prior to the Civil War of 1861-65 (Gobat 2005: 23).

Beginning in San Juan del Norte on the Atlantic Coast, the 375-mile journey across Nicaragua followed the San Juan River to Lake Nicaragua, through the famed colonial city of Granada, and then onward via land until reaching the terminus at the Pacific port of El Realejo. The trip took roughly 20 days, until Cornelius Vanderbilt’s Accessory Transit Company opened an improved (shorter and smoother) route half as long in 1851, which allowed aspiring gold diggers to cross the isthmus in just two days, making total travel time between New York and San Francisco 22 days. Until its closure in 1856 due to warfare, the route was heavily traveled: nearly 2,000 travelers—or Californios as Nicaraguans called the transient North Americans—per month passed through, which was a lot considering that the population of Nicaragua at the time was only 250,000.

Perhaps the most famous traverser of Nicaragua was Samuel Langhorne Clemens, better known by his pen name, Mark Twain. In December 1866, Twain was en route from San Francisco to New York City, where he would set sail for Europe and the Middle East, a trip that inspired his first best seller, The Innocents Abroad (1869). He documented this journey, including his passage through Nicaragua, in a series of letters to a San Francisco newspaper, Alta California, that were posthumously published in 1940 as “Travels with Mr. Brown.” (See this article in the NYTimes.)


Around the same time that Vanderbilt was facilitating the transit of men across the country of Nicaragua, the U.S. was contemplating the construction of an interoceanic canal along roughly the same route—not a novel idea, but rather one traceable back to the time of the Spanish conquest, upon the realization that there was no natural passageway through the isthmus. Explorers struggled to surrender to the fact that nature had not placed a strait:
From the year (1513) when Balboa first looked upon the wide sweep of the Pacific, a century was occupied in fruitless efforts of gallant and capable men to discover that strait which nature should have placed there—but did not…It ought to be true, they said. The seas are so close together for a thousand miles. Commerce between "Cadiz and Cathay " so greatly needs it. It must be so (Taylor 1886: 98-9; emphasis my own).
But, Taylor continues, “The world moving, like all large bodies, slowly toward conviction, did become at last convinced that nature had not pierced the barrier for our use and comfort, and this conviction once forced upon it, plans for an artificial channel began…” (100).


The proposal for a Nicaraguan Canal dates back earlier than the notion of building one in Panama, and even after Panama was under consideration, Nicaragua was for many decades the preferred site. Nicaraguan nationalists, politicians, and citizens promoted the prospect of a transoceanic canal as a project that would single-handedly modernize and stabilize the country’s future. While citizens discussed the canal in town hall meetings, there were public celebrations of canal resolutions, treaties, and visiting survey expeditions. A newspaper called “Canal de Nicaragua” emerged, whose sole purpose was to promote the canal project. Even Nicaragua’s exhibitions at World Fairs, most notably the famous Paris Universal Exposition of 1889, projected a “canal-centered image of a cosmopolitan nation” (Gobat 46). The U.S.-chartered Maritime Canal Company began construction in 1889, but when the U.S. financial crisis of 1893 dealt a blow to preexisting economic difficulty, the company went bankrupt and halted construction.

In 1902, the U.S. Congress voted to build the canal through Panama. Explanations as to why vary, but the aggressive Panama Lobby was a major influence; one day prior to the vote, proponents of the Panama Canal distributed a recently issued postage stamp from Nicaragua showing an eruption of Momotombo, one of the country’s many volcanoes, thereby highlighting seismic instability and the likelihood of natural disaster. Panama, which has no volcanoes and is not as subject to earthquakes, was redeemed as the topographically and geologically safe option. Additionally, new scientific research emerged that countered longstanding assumptions that Nicaragua was the technologically superior route (Gobat 68).

Elite Nicaraguans—their dream of a singular path to cosmopolitanism and modernization shattered—were particularly devastated by the U.S.’s decision to build the canal in Panama. Nevertheless, in 1904, the commencement of construction of the 51-mile (82-kilometer) Panama Canal put the notion of a Nicaraguan canal to rest for the next century. The deal was sealed with the inauguration of the Panama Canal in 1914. [1]

In recent years, serious proposals for a canal in Nicaragua have resurfaced. President Daniel Ortega is particularly enthusiastic about the idea, and Congress recently approved his proposal for a new $30 billion canal (a value about four times more than Nicaragua’s GDP) linking the Atlantic and Pacific Oceans [2]. Under the recently approved proposal, the project would be carried out by a joint venture in which the government would own 51 percent of shares and tenders would be issued for the remainder.

Despite the Ortega administration's claims, including its provocative statement that the Nicaraguan canal would be "larger and deeper" than Panama’s, the prospect is not being taken seriously enough to generate much attention from neighboring countries, or the media. Representatives from the Costa Rican government, who have described the project as “Pharonic,” are, however, concerned that the proposed canal plan involves a piece of land that is on disputed territory. In 2012, Nicaragua began dredging the San Juan, and Costa Rica accused them of invading a small Costa Rican island on the river. Costa Rica’s foreign ministry has stated that Nicaragua is free to develop infrastructure projects on its own territory, but must adhere to relevant border treaties. Ortega maintains that the land belongs to Nicaragua, and therefore has the right to build in the waterway. The territorial dispute is currently being reviewed at the International Court of Justice in The Hague.

With global trade increasingly shifting towards the Asia-Pacific region, China and other Asian countries are keen to build a second interoceanic path, but if and when this will materialize remains unclear, if not unlikely. The Nicaraguan Canal is, of course, being promoted (once again) as the key to economic transformation of the country, and has many supporters, including older people I’ve talked to who have grown up with talk of a canal but never a concrete proposal. Here in the countryside, while I’ve found certain enthusiasts for the idea that their beloved Ortega will make the old dream of a canal a reality, most people agree that such a project will never transpire. Gold diggers and capitalists for now must stick to the Panama Canal.

References:

Gobat, Michael. 2005. Confronting the American Dream: Nicaragua Under U.S. Imperial Rule. Durham: Duke University Press.

Taylor, H.C. 1886. “The Nicaragua Canal.” Journal of the American Geographical Society of New York 18: 95-126.




[1] Panama boasts the only existing man-made passage between the oceans; the Panama Canal handles 5% of world trade annually, and is currently undergoing a $5.25 billion expansion project, set to finish in 2014. The United States handed over control of the canal to Panama in 1999, and since then the canal has generated a total of $6.6 billion for Panama.
[2] $30 billion is the estimated cost of actual construction. The feasibility studies alone are expected to cost $350 million. 


Note:

There is also discussion of the Chinese building an alternative to the Panama Canal in the form of a“dry canal,” or railroad, through Colombia. Colombia is the world’s fifth biggest producer of coal, which is in high demand in China. Colombia’s Caribbean coast contains easily-worked surface mines to high-quality coal, and a Chinese-sponsored canal connecting the coasts would serve foremost as a coal delivery line, from Colombian mines in the Atlantic, to Pacific ports headed for China.